Editor's Note:

In addition to tonight's new watch list candidates, this is a list of stocks on my radar screen that might develop into LEAPS trades. We'll have to see if they offer us an entry point. Some of them need to correct lower. Others need to breakout past resistance.

On my Radar Screen: ATVI, TGT, WMT, MON, CAT, DE, LRCX, SBUX, CMA, TSLA,

- James



New Watch List Entries

APC - Anadarko Petroleum

INTC - Intel Corp.

MSFT - Microsoft Corp.

USO - U.S. Oil ETF


Active Watch List Candidates

EBAY - eBay Inc.

ERTS - Electronic Arts

MCD - McDonald's Corp

NVDA - NVIDIA Corp

QCOM - QUALCOMM

RAI - Reynolds American

TJX - TJX Cos. Inc.


Dropped Watch List Entries

X has graduated to the play list.



New Watch List Candidates:


Anadarko Petroleum - APC - close: 80.72

Company Info

APC is a global oil and gas company. Shares are currently consolidating under major resistance near the $85.00 level. A breakout would mean new all-time highs.

I am suggesting we launch bullish positions if APC can close over $85.25. We'll buy calls the next morning with a stop loss at $77.00. Our long-term target is $109. FYI: The Point & Figure chart for APC is bullish with a $105 target.

Wait for a close over $85.25

BUY the 2013 Jan $110 call (APC1319A110)

Chart of APC:

Originally listed on the Watch List: 11/12/11


Intel Corp. - INTC - close: 24.85

Company Info

Intel is the 800 lb. gorilla in the semiconductor space. The stock has made major progress in the past few weeks with a breakout past resistance at the $24.00 level. Investors could probably buy calls now. I am suggesting we wait for a close over $25.25, which would be a new multi-year high. If this occurs, we'll buy calls the next morning with a stop loss at $22.90. Our long-term target is $29.75 although I will point out that INTC has potential resistance in the $28-29 zone. FYI: The Point & Figure chart for INTC is bullish with a $35 target.

Wait for a close over $25.25

BUY the 2013 Jan $30 call (INTC1319A30)

- or -

BUY the 2013 Jan $30 call (INTC1418A30)

Chart of INTC:

Originally listed on the Watch List: 11/12/11


Microsoft Corp. - MSFT - close: 26.91

Company Info

MSFT is a "safe" way to trade the technology sector. When it comes to big cap tech stocks this one is huge. Many investors see MSFT as a value play instead of a technology stock. I still see potential if shares can breakout of this long-term consolidation of lower highs and higher lows.

I am suggesting we wait for MSFT to close over resistance at $27.50. If this happens we'll buy calls the next morning with a stop loss at $25.45. Our exit target will be $31.25 but we'll make adjustments as needed.

Wait for a close over $27.50

BUY the 2013 Jan $30 call (MSFT1319A30)

- or -

BUY the 2014 Jan $30 call (MSFT1418A30)

Chart of MSFT:

Originally listed on the Watch List: 11/12/11


U.S. Oil ETF - USO - close: 38.21

Company Info

There has been an increase of saber-rattling between Iran and Israel. While we don't expect Israel to actually attack Iran's nuclear facilities it is a possibility. Should that occur oil would skyrocket as Iran tries to shut down the Straits of Hormuz, which carry nearly a third of the global oil tanker traffic. Eventually Iran's nuclear ambitions are going to come to some sort of head. We hope it can be achieved without military action but that prospect seems to be dimming.

Meanwhile, assuming the EU can avoid an economic meltdown, the global economic picture seems to be improving and that means rising demand for oil. We'd like to own some out of the money calls on oil and a great way to do that is the USO. Unfortunately the USO looks short-term overbought here.

I am suggesting we buy calls on a dip at $36.00. The $35.00 level should offer some support. If triggered we'll use a stop loss at $33.75, under the 50-dma. Our long-term target is the $45-50 zone.

Buy-the-Dip trigger: $36.00

BUY the 2013 Jan $40 call (USO1319A40)

- or -

BUY the 2013 Jan $50 call (USO1418A50)

Chart of USO:

Originally listed on the Watch List: 11/12/11


Active Watch List Candidates:



eBay Inc. - EBAY - close: 31.76

update 11/12: EBAY is still churning sideways in the $30-33 zone. If this stock doesn't start showing some improvement over the next couple of weeks we'll probably drop it.

I am suggesting investors wait for a close over resistance at $35.00. If that occurs we'll open bullish positions the next day with a stop loss at $29.95. Our long-term target is $45.00.

Trigger: Buy a close over $35.00

BUY the 2013 Jan $40 call (EBAY1319A40)

Originally listed on the Watch List: 10/22/11


Electronic Arts - ERTS - close: 23.90

update 11/12: ERTS consolidated lower on falling volume. The action in this stock probably took a backseat to the headlines for rival Activision/Blizzard (ATVI), which released their "Call of Duty: Modern Warfare 3" to record-breaking sales of $400 million.

Longer-term we remain bullish on ERTS. I am suggesting we wait for ERTS to close over $26.00 and we'll launch call LEAPS positions the next morning with a stop loss at $21.95.

Wait for ERTS to close over $26.00

BUY the 2013 Jan $30 call (ERTS1319A30)

Originally listed on the Watch List: 11/05/11


McDonald's Corp. - MCD - close: 94.76

update 11/12: Traders continue to buy the dips in MCD and the stock hit new all-time highs. At the moment we do not want to chase it. The $100 level is probably round-number, psychological resistance. I'd rather wait for a correction.

I am suggesting we wait for a dip and buy calls on a dip at $91.00. We'll use a stop loss at $86.75. We will set our long-term target at $108.00.

Buy-the-Dip trigger: $91.00

BUY the 2013 Jan $100 call (MCD1319A100)

Originally listed on the Watch List: 11/05/11


NVIDIA Corp. - NVDA - close: 14.98

update 11/12: I am somewhat surprised that NVDA didn't see a bigger move on its earnings report. The company beat estimates by 3 cents but guidance was only in-line with estimates. The stock saw some post-earnings volatility on Friday morning but nothing out of the ordinary for NVDA.

I don't see any changes from my prior comments. Currently we are waiting for a breakout past resistance near $16.00. I am suggesting we wait for a close over the $16.00 level and then open positions the next day. We'll start bullish positions with a stop loss at $13.90. Our long-term target is $22.50.

NOTE: Due to NVDA's volatility this is an aggressive trade. We want to keep our position size small.

Wait for a close over $16.00 (small positions)

BUY the 2013 Jan. $20 call (NVDA1319A20)

Originally listed on the Watch List: 10/29/11


QUALCOMM Inc. - QCOM - close: 56.62

update 11/12: QCOM almost hit our trigger on Thursday with a dip to $54.66. Shares have essentially churned sideways in the $55-57 range for the last several days. I am suggesting we wait. QCOM will likely try to fill the gap with a dip toward $54.00. More conservative traders could wait for a dip to $52.50.

I am suggesting we buy calls at $54.25. If that doesn't happen then we might consider buying a close over resistance at $60.00 instead. If we are triggered at $54.25 we'll use a stop at $49.45. Our long-term target is $74.50.

Earlier Comments:
QCOM recently reported much better than expected earnings, beating both the top and bottom line estimates. Management raised their guidance looking ahead. The company is reaping the benefits from the booming smartphone market. The CEO said there is over 300 new devices in development that will use QCOM electronics inside. That sounds like there is a lot of potential for growth.

Buy-the-Dip trigger: $54.25

BUY the 2013 Jan $60 call (QCOM1319A60)

Originally listed on the Watch List: 11/05/11


Reynolds American Inc. - RAI - close: 38.90

update 11/12: RAI has been churning sideways in the $38-39 zone the last couple of weeks. There is no change from my prior comments.

At the moment I am suggesting we wait for a close over $40.00. If that occurs we'll launch bullish positions the next morning with a stop loss at $37.85. Our long-term target is $49.00.

NOTE: Investors may want to check out rival Altria Group (MO) instead, which looks poised to breakout past resistance near $28.00 soon.

Trigger: Buy a close over $40.00

BUY the 2013 Jan $42.50 call (RAI1319A42.5)

Originally listed on the Watch List: 10/22/11


TJX Cos. Inc. - TJX - close: 61.34

update 11/12: TJX has been showing relative strength. The breakout past $61.00 on Friday looks like a bullish entry point. However, TJX is due to report earnings on November 15th, before the opening bell. We do not want to launch new positions prior to the announcement. The stock is at all-time highs and there could be a temptation for investors to sell the news and lock in a gain.

We will raise our buy-the-dip entry point to $56.25 and raise our stop loss to $52.40.

Buy-the-Dip trigger: $56.25 *new trigger*

BUY the 2013 Jan $60 call (TJX1319A60)

11/12/11 new trigger @ 56.25, new stop 52.40
10/29/11 adjusted trigger to $55.00, stop to $51.75
10/15/11 adjusted entry point to buy the dip at $54.00, stop at $51.45

Originally listed on the Watch List: 09/24/11